EPA provides exemptions for 140 SRE applications

In Washington, on Friday the Environmental Protection Agency announced its decisions on 175 individual small refinery exemption petitions from 38 refineries seeking an exemption from their Renewable Fuel Standard obligations for the 2016–2024 compliance years. In consultation with the Department of Energy, EPA reviewed all the information submitted by each individual refinery in support of its petition. After careful consideration of all statutory factors and the information submitted by the refineries, EPA is granting full (100 percent) exemptions to 63 petitions, granting partial (50 percent) exemptions to 77 petitions, denying 28 petitions, and determining 7 petitions to be ineligible.

This document articulates EPA’s interpretation of section 211(o)(9) of the Clean Air Act and EPA’s authority with respect to SRE petitions. As required by CAA section 211(o)(9), EPA’s final actions on the pending SRE petitions are based on the legal and factual analysis presented herein, after consulting with DOE, and considering the DOE Small Refinery Study and “other economic factors.”

This document also explains how EPA will implement SRE decisions when an exemption is granted. In addition, this document articulates the status of 34 SRE petitions from 31 refineries for the 2016–2018 compliance years.

“With more than 140 granted refinery exemptions, today’s [SRE] decision alone does not give farmers and biofuel producers the certainty they need,” said Growth Energy CEO Emily Skor. “It is imperative that EPA reallocates each and every exempt gallon in a forthcoming rule to mitigate the potentially devastating impact on biofuel demand. We appreciate EPA’s commitment to issue a rule that ensures promised homegrown biofuel gallons reach the marketplace and upholds the administration’s commitment to American energy dominance,” said Growth Energy in response. 

“We are particularly concerned about what happens with small refinery exemptions moving forward, and for 2023 – 2024. These renewable identification numbers (RINs) have not yet been retired, and how they are handled is critical. If the gallons are reallocated into the program, it would provide the certainty our industry and farmers desperately need. If not, this could have very negative consequences for biodiesel producers and soybean oil demand,” said the Iowa Biodiesel Board.

“Row crop farmers are already struggling with high costs and negative profit margins, and many of Iowa’s biodiesel producers are essentially on life support. Independent biodiesel producers—many of them farmer-owned—are in real trouble if this part of the puzzle isn’t solved soon.